Stage 2:
Feasibility (Could I?)
Comprehending the confines in which your technology should perform
Navigate each of the processes below by reading more, downloading support files, and/or watching some of our online webinars. Each of them provides more context and support throughout the Goldsmith Model.
Process 2.1 - Technical Feasibility
Developing a working model of your new product or service
Now that prior research has been completed, and there is confidence in the potential of your product/service, it’s time to develop working models for testing. The materials that are used on these models do not have to be used on the finished product later. These models are necessary in order to demonstrate that the product is functional to your own satisfaction, as well as begin to grasp the cost for production. Not only that, but they also provide a visual means to share your idea/concept with others for feedback. The value of testing the Technical Feasibility comes when you are able to share your proof of concept with others much easier, with a much deeper understanding.
Process 2.2 - Market Study
Quantifying previous market assumptions using specific characteristics
A thorough quantitative analysis of the consumer market must take place in order for the entrepreneur to either confirm or deny assumptions made while just assessing the market. In layman's terms, the target market of the new technology is defined using data points to be able to easily identify potential buyers. Important points regarding your target market are their characteristics, the number of products used, their budgets, distribution methods, etc.
Process 2.3 - Economic Feasibility
Crafting the financial model of your technology
When conducting an Economic Feasibility investigation, there first needs to be a Break-Even Analysis to understand at what point profits will begin to exist. In layman’s terms, this means measuring the costs of goods sold, capital costs, etc., and comparing it to revenues generated over a certain period of time to understand when and how your technology will break even cost-wise. Once that is established as a foundation, there should be realistic financial projections created for both the best-case and worst-case scenarios. These scenarios provide vital information on the level of revenue that is required to satisfy the ROI desired by the founder/investor(s).